Kellwood Company net sales for the second quarter were $474.5 million, versus $488.2 million last year. The majority of the sales decline came from the womens apparel division. Net sales in the other soft goods division, which includes American Recreation, parent company to Sierra Designs, Ultimate Direction, Kelty, Slumberjack, and Wenzel, were relatively flat at $83.6 million compared to $83.3 million last year.
During the third quarter, Kellwood is expecting sales of outdoor apparel and equipment to accelerate, with revenues in the division increasing from $71 million during Q3 of last year to an estimated $80 million this year. This will be driven by sales of sleeping bags, tents and new products at American Rec.
Like all companies in todays environment, Kellwood is experiencing some inflationary pressure caused by fuel prices, but since a very small portion of their production expenses are dependent on petroleum, management said these pressures were only “mild.”
